In accordance with the directives of President Kassym-Jomart Tokayev to prioritize the development of the manufacturing sector and the production of higher-value-added goods for subsequent export, Kazakhstan is undergoing a structural transformation of its economy aimed at reducing dependence on the raw materials sector and developing more technologically advanced industries.

Thus, the Ministry of Industry and Construction of the Republic of Kazakhstan is carrying out systematic work with an emphasis on the deep processing of basic raw materials and the development of localized production.

The manufacturing sector has overtaken the extractive sector

It should be noted that the manufacturing sector in Kazakhstan demonstrates steady growth dynamics every year. Since 2024, the sector’s share, which stands at 11.9%, has surpassed that of the mining sector, leading to significant structural shifts among key economic sectors.

By the end of 2025, the manufacturing sector’s share of gross domestic product reached 12.7%. This growth was driven by the development of a number of sectors, including metallurgy, mechanical engineering, the chemical industry, the production of construction materials, rubber and plastic products, and light industry.

By the end of 2025, manufacturing output had increased by 6.4%. Growth was observed in virtually all key segments. Production indicators increased by 1.2% in metallurgy, by 12.9% in mechanical engineering, by 9.8% in the chemical industry, by 9.7% in the production of construction materials, by 13.2% in light industry, in the production of rubber and plastic products by 7.6%, and in the production of finished metal products by 13.6%.

The machinery manufacturing sector is showing significant growth. Growth in the sector reached 12.9% thanks to an increase in the production of motor vehicles by 17.5%, other vehicles by 3.8%, agricultural machinery by 18.1%, electrical equipment by 16.0%, and the production of computers, electronic, and optical equipment by 1.5 times.

Kazakhstan’s industry is launching new production facilities

At the same time, as part of the implementation of an industrial policy aimed at boosting productivity, enhancing the economy’s technological sophistication, and creating conditions for the production of higher-value-added goods, 190 projects totaling 1.5 trillion tenge were launched by the end of 2025, creating 22,500 permanent jobs.

Of these, 6,700 jobs were created in rural areas and 1,500 in single-industry towns. Once the projects reach full capacity, their total production volume will amount to approximately 2.3 trillion tenge. At the same time, exports of products are planned to total 0.8 trillion tenge, while import substitution will amount to 1.5 trillion tenge.

By 2025, production of more than 10 new goods, previously not manufactured in Kazakhstan, will also be established. In the machine-building sector, production is planned for locomotive support beams, roof and side panels for vehicles, drive axle beams, cylinder blocks, turbine blades, turbine casing parts for thermal power plants, reverse osmosis membrane elements, and glucose meters. For the first time in the country, production of Pure-Pak cardboard packaging for liquid products has been established, which will completely replace current imports.

In addition, in 2025, new special economic and industrial zones were launched in the Aktobe, Kyzylorda, and Atyrau regions: 17 SEZs, 66 industrial zones, and 34 small industrial zones. To date, 558 projects have already been implemented within the SEZs, including 85 with foreign participation. A total of 453 projects are currently in the implementation phase, including 42 with foreign participation. The volume of foreign direct investment in the SEZs amounted to approximately 1 trillion 47.2 billion tenge.

It should be noted that the Ministry of Industry and Construction currently has 27 investment agreements totaling 5.4 trillion tenge, of which 12 agreements totaling 3.2 trillion tenge were signed in 2025. The agreements cover sectors such as metallurgy and ferroalloy production, mechanical engineering, the chemical industry, the production of construction materials, the textile and woodworking industries, as well as other manufacturing sectors.

In 2026, the implementation of 200 projects totaling approximately 1.7 trillion tenge is planned. These projects are expected to create approximately 19,100 permanent jobs, including 4,300 jobs in rural areas and 1,900 in single-industry towns.

This year, production will begin on about 10 new products not previously manufactured in Kazakhstan. In the machine-building sector, production is planned for 8x4, 90-ton, and 105-ton dump trucks, concrete mixer trucks, truck-mounted cranes, motor graders, front-end loaders, and transformers for renewable energy sources. In the chemical industry, the production of hydrogen and sodium sulfate is planned.

Implementation of the mechanism for supplying enterprises with raw materials in Kazakhstan 

It should be emphasized that one of the key tools for the development of domestic raw material processing has been the mechanism for “supplying domestic raw materials,” which is enshrined in law. It promotes cooperation between domestic producers and raw material suppliers. 

Under this mechanism, major mining companies prioritize supplying the domestic market with raw materials and only then receive an export license. The mechanism applies to copper, aluminum, zinc, and lead. The discount rate depends on the degree of product processing: a discount of LME -5% applies to finished products, and LME -1% to intermediate products.

One example of this cooperation is the Kainar-AKB plant. The company purchases lead from KazZinc at a preferential price and supplies the batteries it produces to both the domestic market and for export.

Domestic enterprises in the electrical engineering industry use metals produced by Kazakhmys and the Kazakhstan Electrolysis Plant.

Qarmet’s products are supplied to Silk Road Electronics for the production of household appliances, as well as to railcar manufacturing plants, providing them with the necessary rolled metal products.

Agreements on raw material supplies have also been concluded between metallurgical enterprises and cable factories.

Furthermore, provisions have been made to expand the range of domestic raw materials as needed by reviewing requests from manufacturing enterprises, including raw materials for the ferrous metallurgy and chemical industries.

Overall, by the end of 2025, approximately 33 domestic enterprises received raw materials at preferential prices in the form of cathode copper, primary aluminum, metallic zinc, and lead. These materials are now used to manufacture cable and wire products, aluminum products, window and door hardware, and automotive batteries.

Source: Ministry of Industry and Trade of the Republic of Kazakhstan

.